Wave Of Defaults On Auto Car Loans Is the Proverbial Canary In The Coal Mine

A wave of defaults on auto car loans is plaguing the U.S. worker. It is the canary in the coal mine. Another great recession is imminent! You have to prepare for how you will deal with it.


https://soundcloud.com/thesocialistprogram/debt-is-crushing-us-workers

 

the Republican run FED said they were raising interest rates to hurt American workers, so sure it is, many corps are speeding up outsourcing to places like India, it's gonna get worse before it gets better I am afraid

the economy is calling for higher wages, the hiked interest rates are calling for corps to tighten their belt

 

There are many leading indicators showing that the Fed's tightening policy is working and the economy is slowing. We don't perceive it yet because unemployment is a lagging indicator, but one that most Americans will actually notice.

I just don't like that this is the way to fight inflation. I don't like that people have to lose their jobs in order for demand to be reduced, which in turn will help lower price inflation. But, on the other hand, I also don't like that the Fed left rates at near zero for so damned long. It never should have gotten to the point that people were taking out loans to gamble on stocks.

 

Capitalism is perfect

 

That's a real point, and true. Also one of many tips of the iceberg.

People not making enough to pay the inflated bills are trying to get wages raised, but productivity is also down and between that and strongly increased material costs, many businesses just can't raise wages. That puts both people and businesses in a squeeze, and I think we will be seeing the defaults and bankruptcies in a lot of areas.

 

I don't see any data.

 

What are you talking about ?

Defaults are lower than they have been in 4 years ?

Date Value
June 30, 2023 3.82%
March 31, 2023 3.89%
December 31, 2022 3.73%
September 30, 2022 3.89%
June 30, 2022 3.86%
March 31, 2022 4.00%
December 31, 2021 3.98%
September 30, 2021 4.05%
June 30, 2021 4.35%
March 31, 2021 4.79%
December 31, 2020 4.77%
September 30, 2020 4.82%
June 30, 2020 5.03%
March 31, 2020 5.05%
December 31, 2019 4.94%
September 30, 2019 4.71%
June 30, 2019 4.64%

 

Thanks, another misinformation thread shot down in flames by citing actual data:



I guess the Trump years must have been great, at least in Trump make-believe world. In reality.....

 

It appears as though you were mislead, or were trying to mislead others.

 

I suspect many of those loans originated during COVID when the price of used cars went through the roof. Folks have loans worth far more than their car is worth now.

 

• Not exactly true, but things are worse overall for workers. Genuinely on democrats and Brandon. Yet, most people aren’t smart enough to see it. However, things are going to get far worse. Be smart, protect yourselves, better have a nest egg.

 

without govt intervention; you are correct

 

https://www.fdic.gov/analysis/risk-review/2023-risk-review/2023-risk-review-section-3.pdf skip down to page 14 of the PDF

 

Another article I read indicated they were mostly subprime loans to begin with.

 

. I see a rather sharp increase at the last data point.

 

That free money is starting to dry up. All those people who rushed out to buy a new car and were told, and believed "Wages are going up" are now reaping what they sowed. Wages never went up enough to cover the inflationary rate, so there is a net loss in wages and now people can't afford that new EV they were told to buy.